Daily Forex Update: USD/JPY
By: Dima Chernovolov
USD/JPY continues to fall after the earlier breakout of the hourly Descending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 6-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and significant Clarity (7 bars). USD/JPY is expected to fall toward the forecast price 112.98 – in line with the earlier downward reversal from the strong resistance area shown below.
As can be seen from the weekly USD/JPY chart below, the top of this Descending Triangle formed near the powerful resistance area lying between the long-term resistance 114.30 (which has been reversing the price from the start of 2017) and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic increases the probability USD/JPY will continue to fall toward the forecast price 112.98.
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